Dear subscriber,

Nigeria released its official inflation data for November this afternoon. Headline inflation surged to 34.60%, in line with the FDC forecast, marking a 28-year high. Noteworthy is the fact that this will be the third consecutive monthly rise since September this year. The increase can be partly attributed to the rise in the price of petrol, logistics costs, and the weakness of the Naira in the foreign exchange markets. The main products responsible for this surge are pepper, tomatoes, vegetable oil, eggs, turkey, bread, and rice.

Food and core inflation rose to 39.93% and 28.75%, respectively. However, monthly inflation recorded a slight decline, easing to 2.63% from 2.64%. This suggests that the impact of logistics costs is beginning to wane.

Inflationary pressures to heighten in December

Headline inflation is expected to continue its upward trend in December, partly driven by festive season activities.

The policy response is likely to be sublime as the CBN waits to see the effect of the earlier policy decision. The cumulative effect of the interest rate hikes manifests itself in modest price changes. We are therefore anticipating that inflation will begin to moderate in the first quarter of 2025.

In the link below, the FDC Think-Tank analyzes the inflation data for November and its impact on the business environment.

Do enjoy your read…